Shares of HeidelbergCement India surged as much as 10% on January 27, 2025, following reports that UltraTech Cement, part of the Aditya Birla Group, is in advanced discussions to acquire the German cement giant’s Indian-listed business.
After touching the intraday high of Rs 242.50 per share, the stock was trading 5.5 percent up at Rs 227 per piece by 12:30.
People familiar with the development said top management of Aditya Birla Group has had preliminary talks with the global management of HeidelbergCement to buy a majority stake in the Indian company. German company owns 69.39% in its Indian business- valued at Rs 3,381 crore-at the January 24 closing price.
If the acquisition goes through, UltraTech will be bound to issue a mandatory open offer to purchase an additional 26 percent stake from public shareholders under SEBI’s takeover laws as well.
UltraTech has been on an inorganic growth overdrive for a couple of years now. Last year, it bought a 55.49% stake in India Cements, besides declaring intentions to raise holdings in a few other cement companies, including Star Cement. The deal is part of the strategy to strengthen its leading position in the frenetically acting Indian cement market since Adani Group announced the acquisition of Ambuja Cements and ACC Limited for $6.6 billion in 2022.
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Source: Moneycontrol
News Desk
